Musk's lawsuit against OpenAI can proceed to trial: US judge
What's the story
A US judge has ruled that Elon Musk's lawsuit against OpenAI will go to trial. The billionaire co-founder of OpenAI is suing the company and its CEO Sam Altman, for allegedly violating its founding mission by transitioning to a for-profit model. The ruling was made by US District Judge Yvonne Gonzalez Rogers in Oakland, California.
Evidence assessment
Judge finds evidence supporting Musk's claims
Judge Rogers stated there is "plenty of evidence" indicating that OpenAI's leaders assured its original nonprofit structure would be retained. She said there are enough disputed facts to let a jury consider the claims at a trial scheduled for March, instead of deciding the issues herself. The judge also said she would issue a written order after the hearing on OpenAI's attempt to throw out the case.
Lawsuit details
Musk seeks damages over OpenAI's for-profit transition
Musk is seeking unspecified monetary damages from what he calls "ill-gotten gains" by OpenAI. He claims to have contributed around $38 million, nearly 60% of OpenAI's early funding, along with strategic guidance and credibility. The lawsuit accuses OpenAI co-founders Altman and Greg Brockman of planning a for-profit switch to enrich themselves, leading to multibillion-dollar deals with Microsoft and a recent restructuring.
Rebuttal
OpenAI denies allegations, calls Musk a 'frustrated commercial competitor'
OpenAI, Altman, and Brockman have denied the claims made by Musk. They have described him as "a frustrated commercial competitor seeking to slow down a mission-driven market leader." Microsoft, another defendant in the case, has asked Rogers to dismiss Musk's claims against it. A lawyer for Microsoft said there was no evidence that the company "aided and abetted" OpenAI.
Legal proceedings
OpenAI seeks judgment against Musk, trial attorney responds
At the hearing, lawyers for OpenAI asked Rogers to enter judgment against Musk, arguing he hadn't shown enough of a factual basis to sustain his allegations including fraud and breach of contract. They also contended that Musk failed to bring his allegations in a timely manner. In response, Steven Molo, a lead trial attorney for Musk and xAI said they look forward "to presenting all the evidence of the defendants' wrongdoing to the jury."